After China’s bans on Bitcoin and cryptocurrencies, miners migrated to countries with a friendly approach.
Brazil, one of the countries receiving immigration, is trying to find friendly solutions for cryptocurrency investors and miners. In this context, the Brazilian Congress is discussing important and striking proposals on cryptocurrencies.
As one of the most important points of the presented draft, it was proposed to accept and treat cryptocurrencies as a currency. Cryptocurrencies like Bitcoin are treated as commodities in Brazil.
Another point presented in the draft is that the Brazilian central bank is proposed to be the main regulator to oversee the cryptocurrency market. Within the scope of this proposal, the Brazilian Securities Commission (CVM) will work and present it as a report to the congress.
Tax Exemption for Crypto Miners!
The most crucial point of the draft was undoubtedly the “zero tax” proposal for crypto mining.
In the draft presented, it is proposed to introduce a “tax exemption” to miners, provided that crypto currency mining from renewable energy sources is done.
In an environment where environmental concerns from cryptocurrency mining are often discussed, the Brazilian government aims to promote low carbon emissions. In this context, Brazil plans not to collect taxes from miners producing with renewable energy sources.
Ray Nasser, CEO of Arthur Mining, has claimed that the country could become a global “mining hub” if tax exemption on crypto mining is passed by the Brazilian Congress.
“There are so many energy companies in our country that we can supply renewable energy. The workforce here is much stronger than in Paraguay and Argentina, and if tax advantages are added to this, Brazil could benefit from the process.”